@article{article_623408, title={FACTORS CAUSING CHANGE IN FOREIGN EXCHANGE DEPOSITS IN AN EMERGING ECONOMY: TURKEY CASE}, journal={Finansal Araştırmalar ve Çalışmalar Dergisi}, volume={11}, pages={264–286}, year={2019}, DOI={10.14784/marufacd.623408}, author={Sönmezer, Sıtkı and Çelik, İsmail Erkan}, keywords={Financial Dollarization,Foreign Exchange Deposits,Emerging Markets}, abstract={<p class="MsoNormal" style="text-align:justify"> <span lang="EN-US" style="font-size:9.0pt;line-height:115%;font-family:"Times New Roman","serif"; mso-ansi-language:EN-US">Financial dollarization has increased substantially in emerging markets in recent years. A material increase in financial dollarization may concern policy makers but it also serves as a cushion for banks and the states. Increase in foreign Exchange deposits may arise from the need to preserve purchasing power, speculation or liquidity concerns. This paper aims to shed light to the relation between foreign exchange deposits and factors such as sight FX deposits, USD/TRY parity, CPI, confidence ındex, VIX, TL deposits, dollar index via a VECM model. Sight FX deposits are found to be a positive and a statistically significant influencing factor on FX deposits; whereas, confidence index and CPI have a negative but a significant relation with FX deposits. Factors that have an influence on the increase in foreign Exchange deposits shall be closely monitored to mitigate the adverse effects of it.  <o:p> </o:p> </span> </p>}, number={21}, publisher={Marmara University}